The AICPA Investment Companies Expert Panel has issued eight technical questions and answers for investment company accounting.
Seven of the questions and answers pertain to the liquidation basis of accounting, and the other is related to loan origination. They can be found in TIS Section 6910, Investment Companies:
- TIS Section 6910.36: “Determining Whether Loan Origination Is a Substantive Activity When Assessing Whether an Entity Is an Investment Company.”
- TIS Section 6910.37: “Considering the Length of Time It Will Take an Investment Company to Liquidate Its Assets and Satisfy Its Liabilities When Determining If Liquidation Is Imminent.”
- TIS Section 6910.38: “Determining If Liquidation Is Imminent When the Only Investor in an Investment Company Redeems Its Interest, and the Investment Company Anticipates Selling All of Its Investments and Settling All of Its Assets and Liabilities.”
- TIS Section 6910.39: “Presentation of Stub Period Information by an Investment Company.”
- TIS Section 6910.40: “Applying the Financial Statement Reporting Requirements in FASB ASC 946-205-45-1 When an Investment Company Presents a Stub Period.”
- TIS Section 6910.41: “Separation of Final-Period Financial Statements Between Going Concern and Liquidation Periods for Certain Investment Companies That Liquidate Over a Short Period of Time.”
- TIS Section 6910.42: “Presenting Financial Highlights Under the Liquidation Basis of Accounting for an Investment Company.”
- TIS Section 6910.43: “Accrued Income When Using the Liquidation Basis of Accounting.”
—Ken Tysiac (firstname.lastname@example.org) is a JofA editorial director.